Short sale alternative with penny stocks: If sh
Post# of 75010
If short selling isn't allowed with penny stocks, the next most common practice of driving the price down is to get the stock at a discount.
People (one or a group) will get together an spread bad news about the company even when they know that good things are around the corner. They'll emphasize the management's poor track record from a business that went bankrupt 10 years ago, or they'll emphasize that sales projections are overinflated, or that the OTC is going to suspend trading on the stock if the skull and crossbones isn't resolved.
They do this to make people worry so that people sell their shares and the share price drops. Then the "bashers" buy up large amounts of stock at the greatly reduced prices. A few days later, when good news comes out and the stock rebounds, the "bashers" sell their discounted shares at a decent profit and move on to another bash.
Its funny...there are some long THCZ positions on this bulletin board, that spread bad rumors so that they can grab more shares at reduced prices. But even though they express negative sentiment about the stock, they actually have large long positions and are hoping that the price goes up to new highs down the road.
And again, I am skeptical about how much one individual or a group of individuals can influence the price. I think news releases and third party articles about the stock do more harm/good than any "bashers" on this bulletin. I personally think that SeekingAlpha is in the business of writing negative articles about penny stocks and then buying up large quantities of shares prior to positive news releases. That's just my personal opinion.